Shareholders May Be More Conservative With Verb Technology Company, Inc.'s (NASDAQ:VERB) CEO Compensation For Now

Shareholders of Verb Technology Company, Inc. (NASDAQ:VERB) will have been dismayed by the negative share price return over the last three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 22 October 2021. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Verb Technology Company

How Does Total Compensation For Rory Cutaia Compare With Other Companies In The Industry?

Our data indicates that Verb Technology Company, Inc. has a market capitalization of US$148m, and total annual CEO compensation was reported as US$1.8m for the year to December 2020. That's a notable decrease of 40% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$452k.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$398k. Accordingly, our analysis reveals that Verb Technology Company, Inc. pays Rory Cutaia north of the industry median. Moreover, Rory Cutaia also holds US$8.9m worth of Verb Technology Company stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2020	2019	Proportion (2020)
Salary	US$452k	US$476k	26%
Other	US$1.3m	US$2.5m	74%
Total Compensation	US$1.8m	US$2.9m	100%

On an industry level, roughly 13% of total compensation represents salary and 87% is other remuneration. It's interesting to note that Verb Technology Company pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Verb Technology Company, Inc.'s Growth

Verb Technology Company, Inc.'s earnings per share (EPS) grew 16% per year over the last three years. In the last year, its revenue is down 4.7%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Verb Technology Company, Inc. Been A Good Investment?

Few Verb Technology Company, Inc. shareholders would feel satisfied with the return of -65% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 4 warning signs for Verb Technology Company (1 is significant!) that you should be aware of before investing here.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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